Castro to HUD

4:37 am

Fri May 23, 2014

San Antonio Mayor Julian Castro delivers the keynote address at the Democratic National Convention in Charlotte, N.C., in 2012. President Obama is expected to announce Castro's nomination to become housing secretary on Friday.

Jason ReedReuters /Landov

A White House official said Thursday that President Obama will tap San Antonio Mayor Julian Castro to become housing secretary and Shaun Donovan, his current housing chief, to run the budget office.

A formal announcement is scheduled to be made on Friday afternoon.

Reporting for our Newscast unit, NPR's Scott Horsley says Donovan would take over for outgoing budget director Sylvia Matthews Burwell, who's expected to be confirmed shortly as the next health secretary. Donovan has led the housing department from the beginning of the Obama administration, and he won high marks for overseeing the recovery effort in the wake of Hurricane Sandy.

If Castro is confirmed by the Senate, the three-term mayor would become one of the highest-ranking Hispanic officials in the executive branch. He is considered an up-and-coming star in the Democratic party, and a Cabinet post could give Castro welcome exposure for a future bid at national office.

With its oversight of subsidized rental housing and its loan guarantees for many first-time buyers, the Department of Housing and Urban Development plays an important role in the housing market and the economy.